Temu, America's New Age Dollar Store

Since its launch in September last year , Temu has caused quite a stir in the United States, and has since expanded to Canada, Europe, and Australia, with its download volume remaining at the top of the list for a long time.

Previously, two video ads aired during the Super Bowl made it even more famous. Its slogan made consumers believe that an ordinary person can also shop like a billionaire.

Since Temu focuses on affordable prices, most of its products are priced below $10, and some are only $0.99. American netizens jokingly call it the new-age online dollar store.

"If Amazon and Dollar Tree had a baby, it would be Temu," one Twitter user wrote.

However, Temu does not seem content to just be an online version of the "dollar store". Its ultimate goal may be to compete with Amazon.

“You can imagine a scenario where a customer gets their keys in their car and drives to the dollar store, and then Temu’s app sends a notification and they can immediately place their order online, and then they say, ‘OK, I’ve already spent the money, so I don’t have to go to the dollar store,’ ” said Juozas KaziukėNas, CEO of e-commerce intelligence firm Marketplace Pulse.

Previously, a Temu spokesman said its "next generation manufacturing model" - which involves sharing data about what consumers shop and search on its site with third-party sellers - was a key factor in its cheap prices.

This enables sellers to predict trends and plan production, reducing the risk of product overstocking. These savings can then be passed on to consumers, the spokesperson said.

In addition, since most of Temu's sellers are in China, labor and manufacturing costs are relatively low. And most of the platform's sellers are factories, and connecting directly with consumers can save the middle suppliers. These are the reasons why Temu offers super low prices.

However, some industry insiders speculate that Temu's low-price model is not a long-term solution. Whether Temu can continue to grow rapidly in the future remains to be seen.

USA

Temu